West Virginia Completes Final Sale of Roads to Prosperity Bonds | News, Sports, Jobs
CHARLESTON – Governor Jim Justice said Thursday that the third and final Roads to Prosperity bond sale was a success.
According to the governor’s office, the state was able to sell $ 200 million in general bonds for the Roads to Prosperity program at an interest rate of 2.56%, generating premiums of $ 62.5 million. dollars.
âWe have a bountyâ¦ that we can use for new highways, side road construction projects. We can use it for anything â, Justice said. âThe premium rate that was achieved in this sale marks the highest premium rate of any state highway bond package to date. Think about it.
Speaking during his COVID-19 briefing, the judge said his advisers encouraged him to sell road bonds in a private market to mitigate possible risks from rising prices. Instead, Justice put the bonds up for public sale to get the best deal and the best rate of return.
âThere are times when I have to be the boss and make the tough decisions. In this situationâ¦ the decision was easy for me. See, I believe in West Virginia, and I really believe the world is starting to believe in West Virginia, so I said no. We are going straight to the market. “
Voters approved the Roads to Prosperity Amendment in 2017, allowing the issuance of bonds of up to $ 1.6 billion to improve major roads and bridges as well as the construction of new roads. Premiums from sales of Roads to Prosperity bonds were used to maintain secondary roads for existing road projects, as well as the purchase of new vehicles and road maintenance equipment.
West Virginia has $ 299 million in GARVEE bonds issued in 2017 and 2018, plus $ 800 million in first-round general bond bonds issued in 2018 and $ 166 million in Parkways Authority bonds in 2018. Premiums for these bonds totaled $ 169 million, bringing total funding for road bonds to $ 1.3 billion. A second set of $ 600 million bonds hit the market in 2019, generating more than $ 746.5 million from $ 146.5 million in premiums.
According to the Department of Transportation, 240 Roads to Prosperity projects are underway, covering 241.8 miles in 2021. As of 2019, 380 Roads to Prosperity projects have been completed, or more than 427 miles of work completed.
As of May 9, the Roads Division had completed more than 9,344 miles of secondary road maintenance projects, including ditching, patching and stabilization projects.